Jet Naked, Canada Jetlines Usher In Age Of Low-Cost Flying ... Maybe

Is the age of ultra low-cost airlines finally coming to Canada? Two new startup airlines hope so, but if history is any indicator, they’ll have an uphill fight making Canada an affordable airline market.

Two new discount carriers, one based in Calgary the other in Vancouver, are promising to cut the floor out from Canada’s two major airlines, Air Canada and Westjet, with much lower prices.

It plans on flying to what it sees as underserved markets in western Canada, such as Regina, Edmonton and Winnipeg.

Jetlines has delayed its planned launch to the spring of 2015, citing last year’s bad winter. But the airline got a step closer to reality this week, announcing a plan to get listed on the TSX Venture Exchange by way of a reverse takeover.

AltaCorp Capital analyst Chris Murray told the National Post it’s no easy thing to make a low-cost carrier work. Planes have to be full in order to make a profit, and “in a small market like Canada, how much traffic are you really going to get?”

CORRECTION:An earlier version of this article incorrectly stated that Cathay Pacific and El Al do not fly to Canada. Both airlines have flights to Canada.